A SOLDIER BANKRUPT

Evening Star, Issue 18031, 27 July 1922, Page 4

A SOLDIER BANKRUPT

LANDS DEPARTMENT'S HARSHNESS ALLEGED. [Per United Press Association.] WELLINGTON, July 27. Tho affairs of F. W. Mills, which have been the subject of _ discussion in Parliament, came up again at a meeting of his creditors. The Crown Lands Department notified that it Ijad been decided to- realise, pn..the. Crown’s security under its first mortgage, and the sale would take place on August 3. As the regulation did not permit of-a reduction of tho principal sum of tho Crown’s mortgage, and as the offer by tho second mortgagee was notsufficient to warrant carrying on the soldier in bis present state, no other course was open to the department. Tho Commissioner said the securities were valued by the Crown at £2,968, and the amount owing was £3,622. Tho Crown intended to claim against' the estate for any balance due after | receipt of the proceeds of thq sale. On behalf of Mr Corner, second mortgagee, who sold the property to Mills, it was stated that he had three ; offers of £l6 per acre before Mills i came in. The latter put no money of his own in, Mr Corner even paying | stamp duties and only charging 51- peri cent, interest. Tho £7OO he got out! of the property was what he bad been living on since. Mr Corner had not done what lie might have done—namely, sold out Mills long ago for arrears of interest. He had been most indulgent, whereas the attitude of tho Lands Department to him had been most antagonistic. It was prepared to make no reductions, but wanted him to forgo cither all or part of bis principal. Mr Corner bad made two offers—(l) that the Crown should payMills £l,-000 cash, which Mr Corner would accept in payment of 'claims totalling £3,400; or (2) if the Crown would make some reduction- lie would waive all arrears and reduce his mortgage to £2,000. ■ During tho discussion which followed on the question of the bankrupt’s discharge Mr Corner’s counsel said ho wanted to he sure that, there was no arrangement between the Crown and Mills." This was in allusion to a state-/ ment by Mr Corner that he was to ho squeezed out. Further action was deferred till legal advice was obtained as to tho validity of securities, but £ls was voted to Mills to carry him on till tho day of the sale. '